UPS sees profits and revenues improve in Q2

Express giant UPS saw revenues and net income increase during the second quarter of the year as e-commerce gains helped push performance.

The Atlanta-headquartered firm saw second-quarter revenues increase by 7.7% year on year to reach $15.7bn, while net income grew by 9.1% to hit $1.4bn.

Revenue growth was led by its US domestic division, up $730m on a year earlier to $9.7bn, while supply chain and freight increased 12% to $2.8bn and international package was up 2.8% to $3.2bn.

The domestic segment benefitted from growing demand for e-commerce deliveries, which fueled the revenue increase.

“The US consumer increasingly prefers to shop online and UPS is taking advantage of this trend through its unique portfolio of delivery solutions and industry-leading customer-facing technology,” the express firm said.

The international segment generated "solid top-line improvement" with increased demand for cross-border shipments.

The company explained: “Export shipments grew across all UPS regions, as customers took advantage of UPS’s expanded portfolio, improved time-in-transit and industry-leading customs brokerage solutions.

“The international segment also made several announcements to expand its capacity and local-market presence.”

“The supply chain and freight segment again showed good momentum this quarter as the teams in each business unit are executing on revenue quality improvements combined with structural cost reduction programs,” said UPS chairman and chief executive David Abney.